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Wednesday, 4 March 2015

Islamic Banking demands measures for its practicality

President Mamnoon Hussain Tuesday said that growing popularity of Islamic Banking in the country demanded urgent measures to make it practical, beneficial and nearer to Islamic ideals of economic justice.

Addressing the second round table conference on “Potentials of Islamic Banking” organised by daily Pakistan Observer in collaboration with National Bank of Pakistan, he said the Islamic Banking being the first step towards interest free banking needed to be equally focused on social equity.

“This is because equitable distribution of wealth is the gist of Islamic socio-economic system,” said President Mamnoon.

He said it was up to the State Bank of Pakistan to ensure proper training of the bankers and also develop a research-oriented mechanism to improve wide range understanding about Islamic Banking system.

“This will ultimately pave way for its actual and successful implementation in the country,” he added.

President Mamnoon Hussain opined that growing numbers of Islamic banks and branches of conventional banks offering Islamic banking to the people needed to be complimented with a legal framework that may facilitate the system in its truest sense.

The president urged the banking community as well as economists and sharia scholars to make optimum of the present government’s commitment towards “Sharia based Islamic Banking.”

State Bank of Pakistan Acting Governor Saeed Ahmed in his presentation said that since the re-launch of Islamic banking in the country, the SBP had accepted the dual responsibility of regulator and facilitator.

He said the SBP had only recently introduced a comprehensive Shariah governance framework in this context to ensure Shariah compliance in institutions engaged in Islamic banking.

Mentioning that the SBP is working with all passion for the cause of Islamic banking, he said, from April 1, all concerned banks would be required to ensure Shariah governance with members conversant in Shariah to keep vigil on banking.

“Training of management as well as of board members in Islamic banking will be ensured,” he said.